On Wednesday , American Airlines Group Inc. filed FORM 8-K report , Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 , which disclosed that it amended its firm orders for Boeing Co.'s B737 MAX 8 aircraft to 30, with 15 aircraft scheduled for delivery in 2023 and the rest to be delivered in 2024.
What appears to be a mutual understanding between two parties, the disclosure reads,
On January 31, 2022, American Airlines, Inc. (American), a wholly owned subsidiary of American Airlines Group Inc. (the Company), entered into an amendment to that certain Purchase Agreement No. 03735, dated as of February 1, 2013, with The Boeing Company (Boeing), pursuant to which American has agreed to purchase a total of 23 additional 737 MAX 8 aircraft through the conversion of existing purchase options.
In addition, American intends to convert a further seven of its purchase options in 2022, bringing its firm order of additional 737 MAX 8 aircraft to 30, with 15 of such aircraft scheduled for delivery in 2023 and 15 scheduled for delivery in 2024.
The change comes after the air carrier said it amended its purchase agreement No.03735 dated February 2013, in which American converts purchase options to buy 23 additional 737 MAX 8 aircraft, and said it plans to convert options this year to buy seven more aircraft.
The amended agreement calls for four 787-9 aircraft to be delivered in 2023, with further deliveries to continue into 2027.
However, the company did not provide further details on the financial terms of the orders. But, Separately, American disclosed that it deferred the beginning of the delivery of certain Boeing B787-9 Dreamliners to the fourth quarter of 2023 from a previously scheduled delivery beginning in January 2023.
Additionally, on January 31, 2022, American entered into an amendment to that certain Purchase Agreement No. 3219, dated as of October 15, 2008, with Boeing, pursuant to which American and Boeing agreed to defer the delivery of certain 787-9 aircraft previously scheduled for delivery beginning in January 2023.
Pursuant to this amendment, deliveries of these 787-9 aircraft will commence in the fourth quarter of 2023 and will continue into 2027, with four 787-9 aircraft now scheduled for delivery in 2023.
However , these amendments are not new, earlier On April 6, 2018, American Airlines, Inc. had already entered into an amendment (the Amendment) to the Purchase Agreement No. 3219, dated as of February 1, 2013, between American and The Boeing Company (Boeing) pursuant to which American agreed to acquire an additional 47 Boeing 787 aircraft.
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The airline said that it expects capital expenditures of about $2.67 billion this year, up from its prior forecast of $2.63 billion. For 2023, it expects capital expenditures about $2.86 billion, compared with its previous view of $2.71 billion.
American Air filing reads,
After giving effect to the transactions described in Item 1.01, above, American now expects its full-year 2022 capital expenditures to be approximately $2.669 billion (versus its prior estimate of $2.631 billion) and its full-year 2023 capital expenditures to be approximately $2.860 billion (versus its prior estimate of $2.714 billion), with the change versus prior estimates in each case attributable to the expected increase in net aircraft capital expenditures.
